PayPal Customers Bought the Dip on Bitcoin & Crypto

The losses that came late Thursday night was the biggest decline since the March sell-off. However, the largest cryptocurrency is still up 135% YTD with its investor base widening who are turning to it in search of a hedge against dollar weakness amidst loose monetary policy.

As we reported, just this week, VanEck launched a physically-backed Bitcoin ETP on the Deutsche Boerse Xetra exchange.

With PayPal diving in, the retail investors are piling in to chase the momentum. The volume on ItBit, the exchange service of Paxos, exploded on Nov. 26. BTC/USD accounts for over $50 million in volume.

ItBit Trading Volume

“It continues to attract both institutional and retail attention as a 21st-century substitute to the gold play,” said Byron Goldberg, who runs the Australian operations for crypto exchange Luno.

Just Noise Against the Larger Bullish Trend

The decline in prices, which has the market in distress even today, as BTC/USD trades under $17k, was exacerbated by unsustainably high leverage. Trader and economist Alex Kruger noted,

“Too many greedy longs bought the top on leverage, and made the price very vulnerable.”

This started soon after the market made a new 2020 high at nearly $19,500. The choppiness in the market is in part due to the Thanksgiving holiday in the US. Another reason could be the expiry of 78k Bitcoin options today. Shane Oliver, Head of Investment Strategy at AMP Capital Investors Ltd. in Sydney said,

“After big rallies in shares and various other assets, they are all vulnerable to a bit of a pause.”

“But Bitcoin more than most, as it surged higher far more and had become far more frothy with speculative interest.”

However, the market is showing resilience as any dips were almost immediately absorbed, making it a bullish dumping. Kruger said,

“I’m bullish. This correction represents noise against the larger bullish trend.”

“The steep contango structure that prevailed up until now finally narrowed,” said Denis Vinokourov of Bequant.

“Only time will tell whether this is the beginning of a longer and more extensive correction, but the overall market structure is very different to the last time Bitcoin traded near these levels. As such, the base scenario remains intact for now.”

Read Original/a>
Author: AnTy

Chinese Police Won’t Return the $4.2B Seized PlusToken Funds; ‘Forfeit to the National Treasury’

PlusToken is back to worry the market. However, it is worth noting that many of the funds scammed by this Ponzi scheme have been getting sold over the years.

It has been more than 100 days, over three months, since these funds have been moved.

“This is bullish either way,” commented Su Zhu, the CEO of Three Arrows Capital.

Today, the reports came that as per the new court ruling, crypto assets worth over $4.2 billion have been seized by the Chinese police in a PlusToken Ponzi scam crackdown. The ruling came amidst the latest reports of China cracking down on online criminal activities.

The crypto assets involved in this scam were 194,775 BTC, 833,083 ETH, 487 million XRP, 1.4 million LTC, 27.6 million EOS, 74,167 DASH, 6 billion DOGE, 79,581 BCH, and 213,724 USDT that are seized by the law enforcement from seven convicts, according to the judgment made public on Thursday.

Unfortunately, these assets won’t be returned to the victims.

“The seized digital currencies will be processed pursuant to laws, and the proceeds and gains will be forfeited to the national treasury,” said the court, but nothing is mentioned about the when, what, and how of it.

The market expects these crypto assets to be released in the market in a “gradual manner.”

The PlusToken Ponzi scheme started its operations in May 2018; it duped more than 2.6 million members.

15 people have been convicted in the case so far who are in jail for two to 11 years with fines between $100k to $1 million. One convict also successfully laundered 145 million yuan worth of crypto into the Chinese Yuan.

Read Original/a>
Author: AnTy

$100M In Crypto Loans Liquidated On Compound After ‘Bizarre’ 30% Spike In DAI Price

  • Over $100 million in loans were liquidated on Compound after a possible oracle exploits on Coinbase.
  • A further $8 million in crypto loans were liquidated on dYdX, a DeFi lending platform.

Almost $103 million in loan collateral has been liquidated on Compound Finance, a DeFi lending and borrowing platform, over the last 24 hours after a price spike on DAI stablecoin on Coinbase. According to data aggregator, LoanScan, a further $7.81 million was also liquidated on the dYdX exchange, totaling close to $110 million in DeFi loan liquidations.

image1
Nearly $110 million in crypto loans liquidated over the past 24 hours after a DAI suddenly spikes 30% in price (LoanScan)

The momentary DAI price spike

DAI caused massive liquidations on Compound as the price of DAI momentarily spiked by 30% on Coinbase, the lending platform’s primary price oracle. According to Alex Svanevik, CEO at Nansen, a crypto-analysis firm, the liquidations arose from an under-collateralization of Compound users’ loans. Svanevik said,

“My understanding is that the DAI price on Coinbase was driven up to a premium of around 30%. Compound’s oracle uses Coinbase for pricing data.”

Nearly 45% of the total liquidated amount on Compound arose from one wallet address, the third-largest COMP farmer, facing liquidation in a total of $46 million.

So how exactly does a DAI price spike to $1.30 cause such massive liquidations?

As a lending/borrowing platform, Compound allows users to borrow and lend multiple cryptocurrencies across the platform. Borrowers must place more significant collateral than the loan they are receiving over collateralized loans. If, at any moment, the smart contract notices the loan is under-collateralized, then it will automatically liquidate the loan and repay itself. Svanevik further explains,

“This caused liquidations as the value of the loans exceeded collateralization-ratio thresholds.”

As DAI’s value spiked, the amount of DAI loaned out increased relative to the collateral provided, leading to under-collateralized positions, hence the liquidations.

Of the total $110 million in crypto loans liquidated, $56 million was from DAI borrowers, $38 million from Ethereum (ETH) borrowers, $10 million from USDC stablecoin borrowers, and $4 million from wrapped BTC (wBTC).

Read Original/a>
Author: Lujan Odera

Bitcoin in ‘Danger Zone’ as Whales Are Active on Exchanges & 78k BTC Options Expire Today

After falling to nearly $16,300, Bitcoin managed to stabilize yesterday, going above the $17,500 level. But as we reported, the pain is not over for the cryptocurrency market.

Today, the market is back to struggling, and it’s to be seen if we finally get the 30% retracement to under $14,000. The expiry of whopping 78k BTC options with a notional value of $1.3 billion today could propel this.

As Hxro Labs points out, Bitcoin has tapped the key retest at $16,500, and it must hold the level or risk further downside to $13,500. It added,

“Resistance now at $17,900 as a bearish throwback level. The market will need to reclaim $18,000 to signal continuation.”

The fact that Bitcoin whales are back at depositing on cryptocurrency exchanges is another reason a further dump is expected in the short-run. Ki-Young Ju, CEO of CryptoQuant noted,

“All Exchanges Inflow Mean(144-block MA) hit 2 BTC. I think we’re in a danger zone. The price is likely to go sideways or down when whales are active on exchanges.”

image1

“Bitcoin may be a victim of its own success,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney. “Traders suggested several large holders moved to lock in gains as the cryptocurrency reached for all-time highs.”

Altcoins had started to turn green, recovering their losses when BTC went under $16,750 today, and the entire market got affected. With funding picking up, perpetual contracts are trading at a premium to spot.

ETH, which is back around $500, has its key weekly resistance at $620 with “$550 now as the bearish throwback level to break to signal continuation for bulls.” Bulls need to hold $465 to keep it from the further downside.

Once we have a healthy retirement, the market will get back into action. Ryan Rabaglia, global head of trading at OSL brokerage in Hong Kong said,

“It’s also not unusual to see a short-term pullback following periods of significant, accelerated gains as traders look to take profits before resetting once volatility subsides,”

“Once the dust settles, we’re back to business as usual with all medium to long-term bullish indicators still in play.”

Read Original/a>
Author: AnTy

Russia Proposes Tax Code Changes; Digital Financial Assets to be Classified as Property

The prime minister of Russia, Mikhail Mishustin, has said that the government is considering categorizing digital financial assets (DFA) as a form of property. Mikhail, who was speaking at a recent Russian government session, noted that the authorities intend to forge a path for a civilized local crypto market. According to a transcript of the meeting, Mikhail acknowledged the growing interest in this emerging asset class, hence the need for advanced oversight informed by law.

Other than supporting the growing crypto industry, Mikhail’s legal propositions are set to protect consumers as well. In fact, the Russian prime minister was keen to highlight that the propositions will help DFA owners to safeguard their rights and interest with a guarantee of proper legal frameworks. He also added that taking such a direction will make it difficult for ‘shadow schemes’ to thrive within the Russian market.

Mikhail’s general sentiment was to amend the tax code to include the legal propositions that would recognize DFA’s as property,

“Let’s make a number of changes to the Tax Code so digital financial assets can be recognized as property, and their owners will be able to count on legal protection in the event of any illegal actions, as well as to defend their property rights in court.”

The prime minister who was appointed earlier this year has been vocal about prioritizing a digital economy’s growth. Previously, Mikhail was the lead of Russia’s tax agency, having to be at the helm for around a decade. His newly appointed role as the head of government comes when crypto assets are a major and unavoidable topic for most developed economies.

Notably, Russia has not been among the most crypto-friendly jurisdictions according to the latest oversight developments that target the operation of crypto assets. Back in September, the Ministry of Finance proposed to criminalize the non-disclosure of crypto accounts. The country is set to enforce its digital asset bill in January 2021, having being signed into law by President Putin.

Oversight Still Ambiguous

While the latest sentiments by Mikhail seem quite bearish for crypto fundamentals, an expert who spoke to Decrypt was of a contrary opinion. Artyom Tolkachev, the CEO of Tokenomica, said that Mikhail’s take had not brought anything new to the table. He mentioned that tax code amendment to feature DFA’s had already been announced some time back. Also, crypto-assets supposedly do not fall within the DFA category,

“It is important to understand that cryptocurrencies are not ‘digital financial assets.’ By their nature, DFAs are more like security tokens, so it is a bit strange that they were considered side by side at a government meeting.”

Read Original/a>
Author: Edwin Munyui

3 Reasons Why Bitcoin Price Crashed 17% to $16,300

Well, this was to be expected after a surge of 85% in the price of Bitcoin since October.

People got a Thanksgiving sale as the BTC price dumped nearly 17% to almost $16,300. Still, the last time we were at this level was just last week, so all good. The lowest we were in November was about $13,200.

Trading around $17,000, the ‘real’ trading volume continues to go up, reaching $6.68 billion.

What else did you expect?

It has been glaringly obvious that Bitcoin is overextended as it kept on breaking above one level after another in quarter four of 2020.

In less than two months, from just above $10,000, we made a new 2020 high of $19,500 just yesterday. After such a wild run, it is to be expected the market would see some correction. Not to mention the leverage started “dangerously” creeping up this weekend.

As we have reported and market participants have been vocal about all this time has been the expectation for a pullback.

“Conditions are very massively overbought and bound for a correction,” said Vijay Ayyar, head of business development with crypto exchange Luno in Singapore. “So I don’t think it’s unusual, frankly.”

Ayyar expects Bitcoin to stabilize and achieve all-time highs but warned that it would be followed by a larger drop in the cryptocurrency.

It’s Usual and Bullish as F

During the last bull run, the digital asset had an average of 30% drop about nine times.

By this standard, we only had half of the correction, another such drop, and we would be going under $15,000, which could give us another Black Friday sale.

Bitcoin trader @CryptoCobain called this a “very bullish dumping.”

image1

It’s “not unusual to see a short-term pullback following periods of significant, accelerated gains as traders look to take profits before resetting once volatility subsides,” said Ryan Rabaglia, global head of trading at OSL brokerage in Hong Kong.

“Once the dust settles, we’re back to business as usual with all medium to long-term bullish indicators still in play,” he added.

You can Blame Some These Too

If you are still looking for a reason why this happened, an assortment of reasons could be blamed.

Just today, OKEx restored the full range of withdrawal services, reopening at 08:00 UTC.

Around the time of the fall in prices, Coinbase CEO forewarned the community on Twitter that the US Treasury Secretary is planning to “rush out some new regulation regarding self-hosted crypto wallets before the end of his term.” This led to the transfer of 1,008 BTC worth over $18.7 million to Binance.

“This tweetstorm made a difference for some market participants, and likely triggered selling flows, which against a backdrop of unsustainable high leverage (present since Monday) led to the largest 24h drop since March,” said trader and economist Alex Kruger.

Read Original/a>
Author: AnTy

ETH Gas Prices Explode Higher After Ethereum Dumps to $480

Everything is going as expected and as seen by the crypto market so many times.

The market has been given a Thanksgiving sale as the price of Bitcoin fell hard, to about $6,300 level.

This obviously led to an even bigger sell-off in the price of the altcoins.

After the rally seen by the cryptos in the past few weeks, a correction was expected, and retail flows into the sector further meant “it’s time to be cautious.”

ETH Got Cheap Again

The second-largest cryptocurrency market cap went down to as low as $480.

Just the day before yesterday, ETH went as high as $620, a level that was last seen in May 2018, thanks to the confirmation of the ETH 2.0 launch on December 1st.

“While Bitcoin has understandably dominated market attention over the past number of weeks, Ether has been quietly building steam in its shadow,” said Konstantin Richter, founder of Blockdaemon. As ETH 2.0 comes closer, “market confidence is peaking,” he said.

After reaching the $600 mark, Etherem faced strong selling pressure. As per the IOMAP indicator of IntoTheBlock, “the strongest level of support for ETH is located between $531 and $547, where 499k addresses previously bought 6.43m ETH.”

As a result, on several of the top centralized exchanges, the funding rate for Ethereum got positive, meaning long traders started paying the shorters to keep the price of perpetual futures contracts near the index price.

Then last night, the price of ETH dropped more than 20% to $480, seen last Friday only.

At the time of writing, ETH/USD has been trading around $500 with $3.4 billion in ‘real’ trading volume.

And Network Becomes Too Costly

Not just ETH but DeFi tokens much like most of the cryptocurrency market are in losses; these cryptos are actually down 15% to 30%.

CREAM, up 14%, is among a handful of tokens that are in the green at the moment.

As a result of these losses, people are changing their positions, and a lot of activity on the Ethereum network is leading to a surge in gas prices.

“Gas has exploded higher since the flush. DeFi traders are active rebalancing positions,” noted trader and economist Alex Kruger.

Ethereum gas fees have surged to 180 Gwei, up 200% from yesterday’s 60.7 Gwei, as per Blockchair.

Earlier this week, the gas fees went down to 29 Gwei, declining from the Sept. 17 high of 539 Gwei when DeFi was topping out.

As such, average Ethereum fees went up to $7.48, an increase of 236% from yesterday’s $2.28. The all-time high in average fees was achieved on Sept. 2nd at $15.2.

Read Original/a>
Author: AnTy

Crypto Thanksgiving Sale Goes Live, Black Friday to Offer More Discount?

Well, what were you expecting after an over 85% rally in these past two months?

This may have taken us all a bit by surprise despite expecting to see this coming for some time now, but it’s a Thanksgiving sale, and buying the dips is the only option.

Bitcoin started breaking one level after another, from just above $10,000 to a new 2020 high of $19,500 just yesterday. And much like BTC, altcoins have been having a wild time.

Recently, Ether went up to $620, and XRP was reaching for $1; everything was simply exploding higher and higher, approaching their mid-2018 highs.

Add today; the market has turned a deep red just like that.

Bitcoin started dropping and didn’t stop until it made its way to nearly $16,300, but the pain isn’t over yet as this 17% crash could further extend into the weekend.

At the time of writing, BTC/USD has been trading around $17,000 with a real trading volume of around $6.68 billion.

Just yesterday, crypto exchange Kraken reported an all-time high volume of $1.4 billion, with $480 million in Bitcoin, $400 million in XRP, and $198 million in ETH. After yesterday, today is going to be another big day for exchanges.

XRP recorded the biggest hit of 25%, falling to just under $0.50 level and Ether to $505.

Today’s biggest losers include Super Bitcoin (-56%), Bankera (-41%), Verge (-37%), ZEN (-32%), KIMCHI (-30%), Zilliqa (-28%), and CRV (-25%).

These deep losses resulted in wiping out $70 billion from the total market cap.

However, still, a few cryptos are recording gains: the notable ones are PumaPay (+56%), Ontology Gas (+53%), and CREAM (22%).

Bears, however, aren’t done with Bitcoin and, by extension, altcoins.

During the last bull run in 2017, the market had an average of 30% retracements nine times; such a pullback will take us to under $14,000 this time.

As Charles Edwards, founder of Capriole Investments, noted yesterday, “19.2K was a technical magnet and biggest near-term test for Bitcoin. That was the time to be super bullish. This is the time to be cautious.”

According to him, the largest cryptocurrency could slide to under $15,000.

“Conditions are very massively overbought and bound for a correction,” said Vijay Ayyar, head of business development with crypto exchange Luno in Singapore. He expects Bitcoin to stabilize and achieve an all-time high, but a large drop would follow even that in the prices for the cryptocurrency.

Read Original/a>
Author: AnTy

Gab CEO Banned by Traditional & Crypto Payment Processors; Bitcoin is a ‘Free Speech Money’

Thanks to Bitcoin, Gab has achieved its first $100,000 revenue in a month, said Andrew Torba, the social networking service CEO.

For the first time in its four year history, Gab saw a six-figure revenue that too without a “single credit or debit card transaction.”

In his post on Tuesday, Torba shared how Gab has been banned from not only dozens of payment processors like PayPal, Square, and Stripe but also many crypto payment platforms like Coinbase and Bitpay.

Besides the business, Torba said he and his family have also been “blacklisted by VISA for merchant processing.”

Calling Bitcoin “free speech money,” he said the digital asset has been crucial for their future, helping not only businesses like Gab and individuals like him but all those firms and people who are being cut off from the banks traditional payment processing methods.

Bitcoin solves this problem, and as such, they are spending “a lot of time at Gab working to educate our community about the importance of understanding and using bitcoin,” said Torba.

The platform accepts eCheck and checks by mail besides bitcoin as payment options.

“We are excited to continue building the home of free speech online funded by the biggest community of free speech warriors on the planet and with bitcoin, free speech money.”

Read Original/a>
Author: AnTy

IDEX to Roll Out Multi-Chain Solution; Starting With Polkadot & Binance Smart Chain

  • IDEX, a popular decentralized exchange (DEX), plans to expand its infrastructure into two extra blockchains, adding its Ethereum (ETH) implementation.

In an announcement shared with BEG, IDEX confirmed a multi-chain solution expansion program that will integrate the decentralized exchange’s infrastructure to Polkadot and Binance Smart Chain (BSC). The latest move aims to expand the possibilities of traders on the platform to tokens, staking programs, and swaps across the blockchains.

IDEX is a layer-2 blockchain solution that combines the non-custodial security of a decentralized exchange while offering a centralized exchange speed and convenience. IDEX runs all of its operations on the Ethereum blockchain and plans to give every IDEX token holder on the ETH blockchain a similar number of tokens on the newly expanded chains.

As Ethereum faces huge gas costs and scalability issues with the rise of the DeFi market, new smart contract platforms such as Polkadot are coming up to offer users faster and cheaper platforms for developers to build their DeFi apps. In a statement on the expansion program, IDEX CEO Alex Wearn stated the expansion program aims to “give customers new networks to complete trades.”

Ethereum is facing tough competition from other blockchains, even in light of the ETH 2.0 Beacon chain launch, expected next week. However, we are stated that the latest move by IDEX to Polkadot and Binance Smart Chain is a diversification tactic rather than a competitive stance as the DEX aims to “put a stake in the ground and plant our [IDEX] flag early.”

The implementation of IDEX will happen on Polkadot Layer 0, meaning that the exchange will connect to a parallel chain (parachain) to Polkadot’s blockchain. IDEX will be integrated on Binance Smart Chain Layer 1, enabling traders to tap into BSC’s centralized DEX ecosystem directly.

The new tokens will be distributed to IDEX users on Ethereum starting December 7, trading on BSC and Polkadot, expected to start in Q1 2021. Tokens that are not claimed promptly will be transferred to a community fund for uses promoting the development of IDEX.

Wearn further stated the decentralized exchange is working on adding new blockchains in the future but is currently working with Polkadot and BSC because both are currently compatible with the Ethereum Virtual Machine (EVM). He further said,

“As these platforms grow, we’ll see increased demand for trading these assets and a need for non-custodial trading solutions that support these networks.”

To enhance the cross-chain network that will provide a one-stop-shop allowing different assets to be traded on its platform, IDEX will offer independent assets across each blockchain. Binance Smart Chain and Polkadot will start with the tickers IDXB and IDXP, respectively.

Read Original/a>
Author: Lujan Odera